MIB directs non-compliant digital news platforms to abide by 26% FDI cap policy

The Ministry of Information & Broadcasting (digital media division) has directed news aggregators, news websites, and news agencies to abide by the guidelines concerning FDI, which limits foreign holding at 26%. Till the FDI policy for digital news was framed, no limitation on foreign holding in digital news companies existed.

In a reminder sent on September 7, 2021, the MIB has directed non-compliant digital news websites to provide details required by the government. The Ministry had directed all those non-compliant digital platforms to take all needed actions within a three-week timeframe.

In 2020 November, the MIB had directed such platforms with foreign investment less than 26% to provide details such as names and addresses of shareholders or directors, shareholding pattern, latest audited/ unaudited account details, etc., within one month.

The Ministry also asked for a confirmation regarding compliance on documentation, reporting requirements, pricing, etc., under the FDI Policy, Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and  Foreign Exchange Management (Mode of Payment and Reporting of Non-debt Instruments) Regulations.

Digital news platforms with more than 26% foreign holding must provide such formation to the Ministry within a month from the issue of the notice, and initiate the needed measures for bringing down the FDI cap to 26% by October 15 2021.

The MIB’s reminder dated September 7, states, “While some entities have ensured compliance in accordance with the Public Notice, it is requested that the entities which are yet to comply with the same may take necessary action within three weeks of the issue of this reminder.”

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